savings

HMO vs PPO and Why the Difference Matters

August 26, 2015 By Will Lipovsky Leave a Comment

Choosing between a Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) is not always an easy decision. One may save you money but limit your options or add inconvenient steps to getting health care for you or your family. Understand these important differences before you choose.

HMO vs PPO

An HMO is essentially a group of doctors who charge a reduced rate to the health insurance company. The insurance company may use other cost reducing tactics in addition to this negotiated rate, such as requiring referrals to a specialist or limiting you to a certain number of covered tests each year. In exchange for these limitations, you gain cheaper health care. You might pay lower deductibles, copays, premiums or all three.

An easy way to remember how a PPO is different is to remember the extra “P” stands for Preferred. In a PPO, the focus is on the medical provider that you prefer, rather than one chosen by the health insurance company. In a PPO, it becomes easier to see your doctor of choice, even when the doctor is outside of the network. You don’t need a referral to see a specialist, which saves you a visit to your primary care doctor when you know that a specialist is needed.

Health Care Insurance Costs

Obviously, these differences cost the insurance company more. The extra cost is passed on to you and other members of the PPO in the form of higher deductibles, copays and premiums. You might also end up losing some of the protections offered in the insurance for your maximum annual out of pocket expense because visits to out of network providers usually do not count towards that total.

Research shows that for Medicare patients, a PPO can cost twice as much as an HMO, depending on the plan. But for workers, PPOs are inexplicably cheaper. You simply will not know which one is cheaper until you get a premium quote and review the out of pocket expenses associated with the plan.

Blurring Lines

HMOs have become increasingly unpopular because of the inconveniences of getting referrals and limitations on certain tests and procedures. To compete with PPOs, more HMOs are easing restrictions on out of network providers. So when you investigate your options, don’t automatically assume the HMO will be too inflexible. Compare services and costs on a case-by-case basis before you decide.

Toys R Us Rewards Rules

August 25, 2015 By Will Lipovsky 2 Comments

Toys R Us has a rewards program for frequent shoppers. It’s popular with parents, collectors and collectible resellers. Those who use the program can tell you that it has many pitfalls that can lead to disappointment. Know the rules of Rewards R Us if you want to get all the rewards you are due.

How Toys R Us Rewards Work

The Toys R Us rewards program offers $5 in ‘R’ Us Rewards for every 125 points earned through purchases. You can also earn extra rewards by using an ‘R’ Us Credit Card, which gives you double the rewards (two for every $1 spent) and other discounts. You also earn one point for every dollar you spend elsewhere that accepts MasterCard. The card also gives you 10 percent off Toys R Us purchases on Thursdays. The program is free, and Toys R Us describes it as “easy,” but certain caveats in the program belie that description.

Caveats

Now for all the exceptions to the program rules… and there are many. First, when you redeem rewards, you can only use the redemption certificate on one item if buying online. You must use a redemption certificate within 30 days of issuing it. This means you must use the rewards website to issue a separate certificate for each item you purchase. If your certificate is valued higher than the item you redeem with it, you lose the overage. This caveat does not apply in-store.

Second, the 10 percent offered with the Toys R Us credit card is only good for in-store and in-stock purchases. So collectors and resellers may find themselves out of luck when trying to cash in on this discount. In addition, the 10 percent discount doesn’t apply to diapers and formula, video game hardware, Apple items, netbooks, tablets, gift cards, protection plans, special orders or fees.

How Discounts Apply with Reward Certificates

When using a reward certificate, coupons and discounts only apply after the certificate has been applied. That devalues percent-off deals, but preserves the value of discounts such as $5 off. Using certificates online is also tricky because you can use a reward to buy an item that goes out of stock after you put the order through. If that happens, you lose the entire reward certificate.

So, Toys R Us rewards can offer you significant savings, but using them online is hit or miss. The best way to redeem rewards is in-store.

Amazon Prime Delivery Time and Its Impact on Local Businesses

August 20, 2015 By Will Lipovsky 1 Comment

Amazon Prime is a membership-based service offered by Amazon, which provides free two-day shipping with a subscription. It also offers “exclusive access” to movies, Kindle books and music for $99 each year. Current estimates place the number of members as high as 50 million individuals worldwide, with 30 to 40 million subscribers in the U.S. alone.

Recently, Amazon Prime expanded its services by creating Prime Now, a delivery option in certain cities (parts of New York City, Baltimore and Miami) which allow members to order thousands of house hold items such as batteries and paper towels to be delivered within two-hours for free or within an hour (only available in certain zip codes) for $7.99. Now, Amazon has brought its “Prime Now” services to Dallas, currently the largest (geographically-speaking) city to receive this new option.

Currently, Prime Now is only available in select Dallas-area zip codes, but according to a blog entry for Nasdaq, Prime Now will soon be expanded. As well, Prime Now is only available between 8 a.m. and 10 p.m. But is available seven days a week. Extended hours are in consideration.

Amazon’s newest addition is another attempt for the company to compete with other online retailers as well as brick and mortar stores such as Wal-Mart and Target. As described on Nasdaq.com, online retailers have a “low barrier to entry,” and thus attract significant amounts of competitions as well as competition from new services such as taxi-sharing giant Uber.

By creating a service such as Prime Now, Amazon can use this “enhanced delivery strategy” to continue to grow and attract new members. Amazon is fulfilling more customer needs. Expansion of the brand continues.

Though Amazon’s push to dominate the market might prove a win for consumers who can afford its services, the company’s aggression has created many losers. Many offline businesses are suffering. In an article published in The Baltimore Sun, reporters Lorraine Mirabella and Natalie Sherman wrote that,

Traditional retailers have long garbled with how to best adapt and compete in the online shopping age. Amazon’s Prime Now is seen as yet another hurdle for Baltimore’s small merchants.

Thus, though Amazon has set its sights on out-competing more and more resellers.

Indeed, to compete with Prime Now, one grocer told Mirabella and Sherman that she would offer to “drop something off” for her customers. However others, such as president of the Baltimore Development Corporation William H. Cole IV., believe the impact of Prime Now might be minimal. Or at least it is too early to decide how quickly Amazon’s services penetrate the marketplace. Still, the expansion of Prime Now seems to suggest that its services are catching on as quickly as our ever-quickening reliance on mobile technology and the Internet.

Coinstar Fees (and How to Avoid Them)

July 29, 2015 By Will Lipovsky 2 Comments

What is Coinstar?

Many banks nowadays don’t accept coins. Many other banks will accept coins but they take a fee for sorting them. It’s a bummer but hey, at least some banks still offer good interest rates. But even as our society gains digital momentum, becoming fully digital just hasn’t happened yet. Many of us still find change ratting around in our pockets at the end of the day. Luckily, we don’t need to throw it in the trash or melt it down for scrap metal. We can instead take it to a Coinstar machine. Coinstar’s are vending machines found all over major towns. You simply pour your coins into the machine and decide how you want your money converted: you have 3 options.

Enter your zip code here to find a machine near you. Or you can simply Google ‘coinstar’ and Google Maps will display nearby locations. But before you do that, read about how to you can dodge those pesky fees. After all, that is the reason you’re reading this post.

The Easily Avoidable Coinstar Fees

These machines are great. You simply pour in your change and make press a few buttons. But beware! While it’s free to exchange your change for gift cards, ($5 minimum in change required) turning your change into bills will cost you dearly. Coinstar’s fee is currently set at 10.9%. That option should never be used by any sane person. Who’s that desperate for bills, anyway? Even in dire situations, it would still be wiser to go to a store, buy something, and see if the cashier will give you some bills. 11% is a lot of money. Just make sure to sweet talk the cashier.

Gift Cards Offered at Coinstar’s

There are plenty of gift cards offered at Coinstar’s. So many in fact, it’ll be daunting to type out. But here goes:

Amazon.com ($5-$1,000)

AMC Theaters ($5-$100)

Applebee’s ($5-$500)

Bass Pro Shops ($5-$500)

Best Buy ($5-$500)

Build-A-Bear Workshop ($5-$200)

Chili’s ($5-$100)

Cold Stone Creamery ($5-$100)

Forever 21 ($5-$200)

Gamestop ($5-$500)

Gap Options ($5-$500)

Home Depot ($5-$500)

IHOP ($5-$100)

iTunes ($5-$500)

Lowe’s ($5-$1,000)

Nike ($5-$500)

Red Robin ($5-$250)

Regal ($5-$200)

Sear’s ($5-$500)

Sephora ($5-$250)

Sports Authority ($5-$250)

Southwest Airlines ($5-$500)

Staples ($5-$1,000)

Starbucks ($5-$500)

Toys-R-Us ($5-$500)

Other Ways to Avoid the Coinstar Processing Fee

You have a few more options beyond the gift card. You can head to a TD bank. Coinstar’s at those banks only charge 8% per coins-to-cash transaction. It’s still high but it’s better than 10.9%. Further more, you can become a customer and get access to the machine for free!

The final method of avoiding the pesky 11% coinstar fee is by paying a 7.5% fee instead. This is the (max) fee you pay if you choose to donate your coins to a charity. Keep in mind these donations are a tax write-off as well.

Definitely Avoid the Coinstar Processing Fee

A little planning goes a long ways towards creating a financially sound life. These little methods of saving (by avoiding the 10.9% processing fee) add up overtime. Remember, saving money is not a sacrifice, it’s an investment in your future. If you read enough of these tips and tricks, you’ll find you always have more than enough money to meet your needs.

Detailed American Express Savings Account Review

July 27, 2015 By Will Lipovsky 1 Comment

That’s right – American Express offers more than just credit cards. They also offer a way to save money – by way of an actual savings account. This was news to me as well until recently.

I want to start this article by saying that this is an article for personal finance perfectionists. Why? Because the interest rate environment is still very poor for us savers. Savings account interest rates don’t vary much. One bank may offer .5% and another .7%. Trying to get the very best rate possible won’t make a difference in your quality of life. However, if you are a savings perfectionist, keep reading. It’s still smart to maximize your dollar. After all, once you get into a high-yield savings account, the income you generating is passive. Passive income is worth the effort to get rolling.

We’ll review this American Express savings account to see what it has to offer. Is it worth leaving the comfort and convenience of your current bank? Let’s see.

Let’s get the deal breakers out of the way…

First off, the account is backed by the FDIC. Should AmEx suddenly file for bankruptcy, you can still get to your money. Second, you do not need an American Express credit card to open a savings account. That’s a relief for those of us who don’t want to apply for yet another credit card. Third, it is an online only bank account. This means you cannot deposit physical money into this account – no way, no how. This means you’ll still need another account for depositing paper checks and cash. Better yet, go electronic. Fourth, the current interest rate (the day this post is being published) on this account is .90% APY. That’s a phenomenal rate by today’s standards. This rate is about competitive as it gets although Ally does offer a slightly better rate at .99% APY.

If you’re anything like me, those were your 4 biggest questions answered. But there are a still a few more issues to cover.

Customer Service

You can reach customer service 24/7 via phone or web. You can also setup alerts so you automatically get notified when something with your account changes – no need to call. Customer service quality appears to be just fine based on the anecdotal evidence to be found on the web. Even if it’s not – you likely won’t need to ever talk with a human being anyway. Remember, this is no brick-and-mortar bank. Online banks save money by not needing to hire staff to field calls. So if you do ever call and wait, understand that this minor inconvenience is how you get such a phenomenal interest rate.

Hidden Fees and Other Annoyances

There are NO fees to open or maintain an account. You only need $1 to open and there’s no minimum balance required. Most high-yield savings accounts require you to keep a minimum amount. This is a hassle but it’s how those other banks make money off your money – they lend it out. It doesn’t do them much good to only lend out $1. However, American Express makes its money off credit cards. They can offer this great rate because of that, apparently. It’s kind of like how the state of Florida doesn’t have state income tax because of the revenue Disney World generates.

Application Process

Applying for this high-yield savings account is as simple as any other.

There are no gotcha’s. I personally haven’t signed up for this account (I use Ally for savings) but I know someone who has gone through the process. He said it’s easy and straightforward. He said it look less than 5 minutes.

Final Thoughts about the American Express High-Yield Savings Account

This savings account is very good. I’ve read about this account for quite a long time and I didn’t uncover anything unsettling. The two competitors in this high-yield savings account world are Ally Bank and American Express. Choose which one works for you. Ally weighs in at a slightly heftier .99% APY. American Express weighs in at .90% APY. Expect a post about the Ally savings account. It’ll get published shortly.

Click here to read 70 customer reviews for the American Express high-yield savings account. Let us know what you decide!

10 Ways to Save Money in Las Vegas!

July 16, 2015 By Will Lipovsky 2 Comments

Ah, Vegas! For many people, few other destinations offer so many opportunities for some good, old-fashioned adult fun. First-class accommodations, five-star restaurants, some of the world’s finest entertainment and the possibility of striking it rich… what more could you want?

Well, you and tens of millions of other adults, that is, and therein lies the problem. Las Vegas visits aren’t as inexpensive as they used to be. High prices keep many people from coming.

Perhaps the reality is that the days of the cheap Vegas vacation are gone. That doesn’t mean there aren’t ways to make it more affordable. Whether you’re going for a show, gambling, or to have Elvis perform your wedding ceremony, there are ways to save. Let me get my disclaimer in right now; if you’re in it for the red carpet treatment, a lot of these tips may not be for you. If you’re interested in having a great time without blowing your life savings, try some of the ideas below.

Plan, Book, and Buy Early

Planning ahead is the best way to find savings on any kind of getaway. If you’re a penny pincher like me, it should be your first strategy. This gives you the opportunity to find the best transportation fares and lodging rates, as well as getting cheaper tickets for shows.

Timing Matters

For all its glamour, good, old Sin City is a Mojave Desert community. Many Vegas “regulars” avoid visiting in the summer months. The difference isn’t enough to impact prices in town, but it does make a difference in air fares and travel packages. There are air conditioners and plenty of pools, so if you can take the heat, check out summertime prices.

Avoid Going on Weekends and holidays

Weekends and holidays are the busiest times for the Vegas shows, casinos and hotels. This means that rates may be higher. If you can plan your time there during the week, you’re likely to same some money on your hotel room and show tickets, at least. You may also enjoy less crowded casinos, stores and clubs.

Budget

Yes, I said that word again. If there’s anything fun that deserves a budget, it’s a trip to Las Vegas, particularly if you plan to gamble. (Arguably, if you don’t plan to gamble, you’re missing a big part of the experience.) As part of the planning stage, you need to work out exactly how much you have and where it’s going to go. Work out your travel, lodging and food expenses along with the cost of shows you plan to attend, etc. and see how much is left for gaming. Don’t forget to set back some funds for emergencies.

Sleep Cheap

As I mentioned above, Las Vegas has plenty of 5-star hotels. It also has several Motel 6 locations, a Super 8 Motel, EconoLodge and a host of other cheaper accommodations. In the long run, how much quality time do you plan to spend in your own hotel room? Trust me, at $20 to $60 per night, you’ll save a lot more than the $100 in casino chips the high-end hotels will give you while charging you hundreds per night plus gratuities. Read this article to find out how to get the best hotel rates possible.

Eat Cheap

If you don’t need all of your meals prepared by a Cordon Bleu chef, you don’t have to spend a lot to eat in Vegas, either. Ever hear of Denny’s? There are 18 locations in Vegas, 4 of which are on Las Vegas Boulevard. IHOP? It’s right on the south strip. All of your favorite fast food restaurants are there, too, as well as many well-known all-you-can-eat buffets. There are some unique dining experiences to be had, but if your wallet is lean, you can definitely cut some costs in the eating department.

Get Cheap – or Free – Transportation

When it comes to getting around the city Las Vegas has several reasonable options available. There are free buses that run between many of the popular casinos. Many of the hotels have shuttle service. Other buses run between properties for around $2.50 – $5.00. There’s also a massive public transit system called CAT.

See Some of the Local Attractions

There’s more to Vegas than gambling and expensive entertainment. It’s well worth checking out some of the other attractions, especially if you’re with your family. There are museums, fine art galleries and dozens of other highlights that may cost much less than a few hours at a casino. In fact, there’s a whole world of free things to see and do. Here’s a handy list of free things to do in Vegas.

Check On Discount Coupons

Almost all hotels in Las Vegas will have coupons available for transportation, drinking and dining, gambling, and the local attractions. They won’t always be on display, so don’t be shy about asking.

Remember the Cardinal Rule

There’s a reason that Las Vegas hotels and casinos can afford the ornate architecture, wondrously outlandish furnishing, incredible lighting and all the accouterments that set them apart from the rest. It’s simple; the odds are always in the house’s favor. For every big winner in Sin City, there are thousands of big losers. The rule that all serious gamblers live by is, in simple terms, “Stop playing when you lose your limit.” That limit is the amount of money you’ve allowed yourself in the budget. Don’t be a big loser.